AMN Healthcare Services, Inc. (AMN:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 23.2x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and although management may have concerns about gross margins, 2021 demand, and new clinicians, market expectations are too bearish, and long-term equity outperformance is likely...
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December 22, 2020
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: CBRL – Cracker Barrel Old Country Store, Inc. Other Highlights: KSS, MPWR, RAD...
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December 21, 2020
D.R. Horton, Inc. (DHI:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 9.1x Uniform P/E, implying bearish expectations for the firm. Although management may have concerns about home demand, unsold homes, and the strength of their position, market expectations are overly bearish, suggesting equity upside remains warranted for DHI going forward...
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December 20, 2020
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December 18, 2020
Global Payments Inc. (GPN:USA) currently trades near historical highs relative toUAFRS-based (Uniform) earnings, with a 37.9x Uniform P/E....
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December 17, 2020
- Excessively Positive Sentiment Points to Early 2021 Returns Being Pulled Forward. The recent rally has pushed investors to exuberant levels, they are not focused on near-term risks. Valuations are expensive, and continued earnings growth is needed to justify them. Valuations and sentiment may cap near-term upside, as investors may have gotten ahead of the 2021 story. This may limit stock appreciation potential in Q1 2021
- That being said, a pause in the stock market doesn’t mean another bear market is imminent. Thanks to healthy credit fundamentals going into the pandemic and coming out of it, it’s unlikely the economy or the market is going to come under pressure. Favorable bank, corporate, and consumer credit fundamentals coming out of this disruption still point to optimism for a strong recovery...
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December 17, 2020
Kohl’s Corporation (KSS:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 39.2x Uniform P/E. At these levels, the market is pricing in expectations for profitability to stabilize near historical lows, but management is confident about their portfolio, servicing customers, and the holiday season...
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December 16, 2020
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December 16, 2020
Highlighted Top Ideas: NFLX – Netflix, Inc., R – Ryder System, Inc., WYND – Wyndham Destinations, Inc....
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December 16, 2020
Monolithic Power Systems, Inc. (MPWR:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 72.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about a market slowdown, their gross margin guidance, and inventory levels...
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December 15, 2020
Each week, the Valens Research team highlights our most interesting insights from across our tools and our analysis, including individual company, industry, and macro insights. Top Highlight: COF – Capital One Financial Corporation Other Highlights: APH, CLF, LULU...
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December 14, 2020
KB Home (KBH:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with an 11.3x Uniform P/E. At these levels, the market has bearish expectations for the firm...
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